Press Metal Aluminium Holdings Bhd’s new joint venture (JV) to establish its second alumina refinery in Indonesia could contribute at least RM200mil to RM300mil in profit.

This is assuming a normalised alumina price of US$350 to US$380 per tonne versus the current price of US$530 per tonne, said UOB Kay Hian (UOBKH) Research in a report.


Press Metal on Wednesday said it had entered into a strategic JV with PT Alakasa Alumina Refineri, PT Dinamika Sejahtera Mandiri and PT Kalimantan Alumina Nusantara (KAN).

Under the agreement, KAN will establish an integrated alumina refinery in Sanggau, West Kalimantan, Indonesia.


The refinery, which will have an initial annual capacity of up to 1.2 million tonnes is projected to cost around RM3.24bil.

Press Metal will acquire an 80% equity stake in KAN and this will be funded internally.